Buying an OwnShare

OwnShare, also known as  co-ownership, shared ownership or fractional ownership, is a popular option for individuals or families who want to own a holiday home without bearing the full cost and responsibility of outright ownership. OwnShare allows multiple individuals to own a percentage of a property, with each owner entitled to use the property for a period of time each year based on the number and duration of bookings and OwnShare’s Fair and Equitable Policy. These rights exist forever, until the share is sold, at which time they pass to the next owner; just like traditional property ownership.

OwnShare involves a legal agreement outlining the ownership structure and usage rights of each owner. In OwnShare‘s OwnShare model, each owner owns a share of the property, usually ranging from 1/8 to 1/4, and has usage rights proportionate to their ownership share. By contrasts, in a timeshare arrangement, ownership is divided into specific time periods, typically a week or two, with each owner entitled to use the property during their designated time only with no underlying ownership of the property; just some rights to use it. Timeshare tends to be used for large buildings, such as large apartment buildings, and has many ‘owners’, often hundreds. OwnShare only operates in the OwnShare structure and does not offer timeshare, preferring the intimacy of a small group of families owning a single property.

OwnShare can provide several benefits to owners, including lower upfront costs, shared responsibility for ongoing costs, and access to holiday homes that might be more luxurious than they had previously thought possible. However, it is important for potential owners to consider all elements of the arrangement such as flexibility in scheduling usage.

In addition to the legal agreement defining ownership and usage rights, OwnShare typically involves ongoing management and maintenance of the property, which will be handled by OwnShare, to cover services such as property maintenance, housekeeping, gardening and concierge services for co-owners and guests.

Overall, OwnShare can be a great option for individuals and families looking to enjoy the benefits of a holiday home without bearing the full cost and responsibility alone.

Yes, in OwnShare, you actually own a share of the underlying home. Put another way, OwnShare is where a small group of people collectively own the entire holiday home and individually own an interest in it.

OwnShare interests are represented by a share of a limited liability company and it is the company which owns the title or deed to the home on behalf of its shareholders, the co-owners. It is very similar to traditional property ownership, but the property interest is smaller than in outright ownership as each owner holds a percentage ownership interest in the home rather than 100%.

A property interest gives co-owners the right to use the home exclusively, subject to booking arrangements with other co-owners. It also allows co-owners to reduce the costs of owning and maintaining the property by sharing costs such as property taxes, insurance, and maintenance with other co-owners.

OwnShare of luxury holiday homes can be an attractive option for people who want to enjoy the benefits of owning a second home without the full financial burden and maintenance responsibilities of owning it outright. Here are some benefits of OwnShare:

1. Cost savings: OwnShare allows you to share the costs of purchasing and maintaining a luxury holiday home with other co-owners. This can significantly reduce the upfront costs and ongoing expenses, making it more accessible for those who may not have the financial means to purchase a second home outright.
2. Multiple homes: OwnShare can facilitate the purchase of multiple homes in multiple locations, allowing a travelling lifestyle that otherwise would be impossible for most people. It’s always good to be home. Why leave it at just one.
3. Multiple shares: Want more time, but another share. Each share provides 6 weeks use every year.
4. Flexibility: With OwnShare, you own a share of the home and are not tied to it for the entire year. This gives you the flexibility to use the home when it suits you, without the guilt that full ownership provides if you want to go somewhere else. OwnShare can be particularly attractive for those who only want to use the home for a few weeks or months each year.
5. Greater access to luxury homes: OwnShare can also provide greater access to luxury homes that may not be affordable for an individual to purchase outright. This can be particularly appealing for those who want to own a holiday home in a desirable location, such as a beachfront property or mountain resort, but may not have the means to do so. As such, OwnShare really does allow you to own the dream.
6. Social benefits: Tell all your friends about ‘your’ home in Burleigh Heads, ‘your’ home in Noosa Heads on the Sunshine Coast or ‘your’ home in Palm Cove north of Cairns. Invite them all to your homes away from home and live the life of the rich and famous.
7. Community benefits: OwnShare can also provide community benefits, as the home is used only by owners, not renters, and the occupancy rate is normally 85-95%, thereby contributing to the community year round.
8. Professional management: OwnShare will be responsible for maintaining and managing the property on behalf of co-owners, taking care of tasks such as cleaning, maintenance, and bookings. This can save you time and effort and ensure that the property is well taken care of.

Overall, OwnShare of holiday homes can be a cost-effective and flexible way to enjoy the benefits of owning a holiday home without the full financial burden and maintenance responsibilities of outright ownership. It can provide greater access to luxury homes, shared responsibilities, social benefits, and professional management services.

One of the key benefits of owning an OwnShare is the ability to book stays easily. Here’s how bookings work.

OwnShare co-owners schedule bookings directly through OwnShare’s booking app. This makes it easy and convenient, allowing co-owners to see real-time availability for your home. Bookings can be made from 2 days to 2 years in advance on a first-come, first-served basis.

The number of weeks each co-owner can use the home is based on the number of shares owned. For example, if a co-owner owns 1/8th of the home, they would be entitled to use the home for six weeks per year with additional short-term stays over and above this.

General Stays can be booked from 30 days to 2 years in advance subject to some limitations during Peak Season and Holiday Periods to ensure the system is fair and equitable for all co-owners. Peak Seasons and Holiday Periods are defined for each individual home. As the demand during these periods is high, the number of bookings and the number of consecutive nights booked during these periods is limited until all co-owners have had ample opportunity to book their preferred dates. Outside of Peak Season and Holiday Periods, bookings are easier and more flexible.

All dates, irrespective of its Peak Season or Holiday Period classification, that remain un-booked within 2 to 30 days of the proposed arrival date will be released to all co-owners and available as a Short-term Stay. This provides co-owners with the flexibility to stay on an (almost) spur of the moment basis. Short stays do not count towards your allocations and are encouraged to make the most of the home.

Co-owners can book for their own personal use, that of a life partner or a family member such as children. Co-owners can also book for guests. If a booking is made on behalf of a guest and the co-owner will not be present in the home for the whole period of the booking, then there are additional identification requirements and an ongoing obligation that the co-owner will remain responsible for any losses or damage caused by their guests.

And, of course, neither co-owners nor family nor guests are permitted to rent out the home other than through OwnShare in the way allowed under the agreement. OwnShare‘s core ethos is that homes are for living and sanctuaries for families. We believe sharing ownership and sharing usage is a more elegant evolution of the sharing economy compared to, for example, companies like AirBNB or Stayz which only share usage, but keep ownership firmly in the hands only of those who can afford 100%.

OwnShare‘s concierge service can assist with everything from booking local activities and making restaurant reservations to arranging transportation and stocking the fridge with groceries. And OwnShare‘s property management team ensures each property is clean and well-maintained before each stay. During your stay, co-owners can contact OwnShare‘s team at any time with questions or concerns.

In summary, bookings with OwnShare homes are easy and convenient for co-owners. The booking app provides real-time availability and a flexible booking policy, while the concierge service can assist with trip planning and the property management team ensures that each property is clean and well-maintained.

There are several alternatives to OwnShare for those who want to own a holiday home:

1. Full ownership: One alternative to OwnShare is to purchase a holiday home outright, ie. 100%. This gives you complete ownership of the property and the freedom to use it as you see fit. However, it also means that you will be responsible for all the costs of buying, owning, and maintaining the home, including 100% of the property taxes, insurance, and maintenance. Just make sure it is worthwhile, for you. On average, holiday homes are used for about 6 weeks a year . . . and empty for the rest, about 10 months a year! It’s a terrible waste if you pay 100% of the costs for only 15% of the benefit. And short-term rental, such as AirBNB, only increases this occupancy by 10% to 30% depending on the location. Still a terrible waste. OwnShare properties however, are occupied 85-95% of the year.
2. Timeshare: Timeshare is where people purchase the right to use a property for a specific week or weeks each year. Timeshares are typically sold in fixed increments, such as one week per year, and may include amenities such as house-keeping, meals, and access to recreational facilities. Timeshare is primarily for large complexes with hundreds of rooms and hundreds of owners and is often viewed as a budget option.
3. Holiday rental: Another alternative to OwnShare is to rent a holiday property on a short-term basis. This can be a good option for those who only want to use a holiday property for a short time, but it requires research, can result is some ‘surprises’, helps the owner of the property pay off their loan and does not offer any capital growth. There is also the risk of some community backlash and rising prices as Governments actively discourage rental platforms like AirBNB and Stayz by introducing Short-term Stay levies (eg. 7.5% in Victoria, Australia), maximum night caps, compulsory onsite hosts and increased land tax on second homes.

Overall, the best option for you will depend on your individual circumstances, including your budget, the amount of time you want to spend at a holiday home, and your willingness to take on the responsibilities of ownership.

OwnShare and timeshare are both types of shared ownership of holiday properties, but they differ in several fundamental ways.

OwnShare typically involves a micro-community – a small number of people each owning a share (usually from 1/8 to 1/4) of a single ‘property’ (real estate) and having a pre-agreed arrangement to share use and costs. In contrast, timeshare typically involves ownership of a specific ‘time’, usually a week or two, every single year, without any ownership stake in the property itself. This is a fundamental difference. OwnShare provides ownership and control over the underlying real estate. Timeshare does not.

OwnShare also offers more flexibility in scheduling holidays because stays can be at different times every year and can differ in length. Under timeshare however, usage rights are generally fixed at the same week(s) every year, year after year and for same length of stay as well. As such, timeshare offers limited flexibility.

Finally, OwnShare is often viewed as a more exclusive and upscale option, as it typically involves ownership of higher-end holiday homes and includes more personalised and high-end services, such as concierge services and holiday planning. Timeshare tends to be used in large complexes with hundreds of apartments to improve occupancy during weeks of low demand. Timeshare also tends to involve hundreds of timeshare owners where even a specific room is not guaranteed every year.

Overall, OwnShare and timeshare are both good options depending on what you are seeking. They differ markedly in terms of ownership structure, ownership of the underlying asset, flexibility in scheduling usage, and overall level of exclusivity and luxury.

Yes, you can sell your share. OwnShare’s OwnShare arrangement includes a re-sale program, which allows you to sell your share according to a streamlined process outlined in the agreement. It is important to understand the process that applies, but the arrangement allows you to sell your share anytime after one year and for you to name the price at which you offer your share for sale. Similar to other assets, it is then up to the ‘market’ to provide feedback on the price point and when changes may be needed.

It is possible to obtain a loan to purchase a share in a holiday home, although the availability and terms of such loans may vary depending on the specific lender and your individual circumstances. Some banks and financial institutions may offer loans specifically for OwnShare purchases, while others may consider such loans on a case-by-case basis. This includes, of course, Home Equity Loans where the purchaser uses equity in their primary residence to purchase a share of a holiday home. If your financial means allow, this may also be supplemented by other assets, such as shares or bonds.

If you are interested in obtaining a loan to purchase a share of an OwnShare, it is a good idea to shop around and compare offers from multiple lenders. Be prepared to provide information about your financial situation, including your credit score, income, and assets, as well as details about OwnShare‘s OwnShare arrangement.

It is also important to carefully review the terms of any loan you are considering, including the interest rate, fees, and repayment terms. Be sure to understand the total cost of the loan and how it will affect your budget over the long term.

It may be helpful to speak with a finance broker or financial advisor to determine the best type of loan for your needs.